Barcelona cleared all debts

The Primera Liga club has reported it has managed to clear its deficit and meet the board's economic objectives for season 2003/04. President Joan Laporta's team set about the process of reducing costs, increasing income and restructuring debts. Income was raised from €123m to nearly €170m by increasing the number of club members, television contracts, sponsorship revenue and friendly matches. In addition, total expenditures was falling from around €200m to €162.5m while salary outlay dropped nearly 25% following the renegotiation of player contracts which is now considerably less on fixed wages and more in performance-related payment. However, after it emerged he had not been asked to approve the club accounts this year, economist Joan Trayter the club’s stand-in president has criticized Laporta's financial management claiming the board is making serious mistakes. "We inherited a club with falling income revenues, loss of €72m and a debt of €164m, but we shortly have managed to be compensated and balance by the sale of assets and the transfer of players," Vice-president Ferran Soriano told media. The club expects to generate income of €201m this season, representing an increase of 18% on the past financial term. Expenses are estimated to be approximately €186.9m, therefore the board is counting on making a profit of €16.1m.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.